A bad day for Caldera

Linux and Unix software maker Caldera International spilled a dose of bad news on Wall Street Wednesday, announcing that it will miss second quarter revenue estimates, close two global offices, lay off staff and say goodbye to its chief technology officer (CTO).

A week following the close of its second quarter, Caldera now estimates that it will report revenue between US$15.1 million and $15.5 million for the quarter, nearly $3 million off projections given at the end of its first quarter when the company expected to bring in as much as $18 million.

Analysts estimated Caldera to report roughly $17 million in revenue and lose $0.28 per share, according to a consensus reported by Thomson Financial/First Call. Caldera, based in Lindon, Utah, is scheduled to report full second quarter earnings on May 29.

As the company continues to feel the pain of the IT spending downturn and the lack of demand for its desktop and server operating systems, the company also said that it will cut 15 percent of its worldwide workforce. Some 73 employees will lose their jobs from various regions and divisions of the company, leaving a total staff of about 400, the company said.

Along with its staff cuts, Caldera's CTO Drew Spencer, and Chief Legal Counsel Harrison Colter, announced that they will leave the company, staying on as part-time consultants. The company will not name a new full-time CTO.

Additionally, Caldera announced that it is closing its office in Chelmsford, Massachusetts, which it acquired when it purchased the technology assets of Acrylis Inc. It will also shutter its office in Erlangen, Germany, where much of its Linux development took place. The company said it will continue its German operations in Munich and Frankfurt. Those closures are expected to save the company $7 million annually, Caldera said.

Ransom Love, chairman and chief executive officer of Caldera International, blamed the bad news on "difficult worldwide IT market conditions" in a statement released after the close of market Tuesday.

Ahead of the news, shares of Caldera (CALD) gained $0.03, or 2.87 percent, to close the day at $1.04. The stock was unchanged in after-hours trading.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Matt Berger

Computerworld
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?